Incentives to Start and Finance Small Businesses
-Tax deductions increase for start-up expenses for 2010

Business Tax Credit Incentives
-Any increase from one year to five years for the small business 2010 general business credit carry back period; and
-Small businesses' general business credits in 2010 are not subject to alternative minimum tax.

Other Small Business Tax Incentives
-Temporary reduction in recognition period for built-in gains tax;
-Cost of health insurance is deductible when calculating 2010 self-employment tax; and
-Cell phones and telecommunications equipment are removed from listed property standards.

New SBA Financing Alternatives
-New $30 billion lending fund enables community banks and other financial institutions to initiate small business loans;
-Up to $7.5 billion in low-interest refinancing is available for two years after enactment;
-Government loan guarantees increased to 90% of loan amount;
-Loan commitment limits increased to $4.5 million and total gross loan amount to $5 million;
-Raises loan maximums for plant acquisition, construction, conversion, and expansion to $5 million or more;
-Micro loan Program maximum loan amount increased to $50,000.

Other Small Business Provisions
-Federal agencies are required to include small businesses in federal contract bid solicitations;
-Strategic mentoring programs between large and small business will be studied;
-Health insurance costs will be excluded for determining earnings from self-employment;
-New pilot programs establish not-for-profit lenders as small business loan intermediaries; and
-State Small Business Credit initiatives and small business development centers are supported.

These are just the highlights of important changes made by the legislation.

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